VAT non-compliance issues: GRA exposes 12 businesses swerving VAT payment among others

Ghana Revenue Authority (GRA)

Ghana Revenue Authority (GRA)

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The Ghana Revenue Authority (GRA) has exposed 12 business entities in Ghana who are swerving the payment of VAT and other tax obligations.

GRA said by Section 41 of the Value Added Tax Act, businesses in Ghana are required to consistently provide VAT invoices, and failure to adhere to this mandate constitutes a violation of the law.

However, the recent operation carried out by the GRA shows that certain enterprises operating in Ghana have chosen to disregard this legal mandate by either not registering for VAT or neglecting to issue VAT documentation to their customers.

In the city of Accra, the Ghana Revenue Authority (GRA) recently conducted an inspection that exposed VAT non-compliance issues within 12 businesses.

These businesses were found to be entangled in various tax transgressions, including their failure to register for VAT and their omission of VAT documentation.

The list of non-compliant entities encompasses establishments such as New Horizon Coldstore, Glorious Shoppers Delight, Kriskay Kiddies, Uncle Sas Autoparts, and Sunset Glow.

Additional companies on the list comprise T6 Enterprise, OPFA Mart Enterprise, Big Apple Gym/Astroturf, Rhema Batteries, Andy Foods Ventures, Don-Elija Boutique, and Korland Motors.

In a post-inspection briefing with the media, Joseph Annan, Assistant Commissioner at the Head-Accra Central Enforcement Unit of the Ghana Revenue Authority, emphasized their unwavering commitment to ensuring business compliance with VAT payments and other tax obligations.

Announcing an expanded scope, he stated, “This time, our focus extends beyond VAT; we are now committed to ensuring complete tax compliance. Taxation encompasses more than just VAT, so our scrutiny will encompass all applicable taxes for any given taxpayer we visit. We are not limiting our search solely to VAT.”

He further explained, “We will conduct comprehensive evaluations of the taxpayers we encounter in each area to ascertain their eligibility for various tax categories. This approach is how we intend to enhance our tax collection efforts. It’s not solely about VAT compliance; it’s about adhering to all tax categories.”

It is worth noting that the Bank of Ghana, in its May 2023 Monetary Sector Report highlighted a significant increase in domestic VAT collection. The report indicated a surge of 92.4 percent, with VAT collection rising from GH¢649 million to GH¢1.2 billion during the first quarter of the year.



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